RBL Bank Full Form - Ratnakar Bank Limited

RBL full form is expanded as Ratnakar Bank Limited, a private sector bank located across India. Ratnakar Bank Limited, formerly known as Ratnakar Bank, has been in business since 1943. RBL Bank has been striving to provide its customers with an array of banking services with top-notch user experience. For the same, RBL Bank provides services across various vertices, including commercial banking, corporate banking, institutional banking, branch and business banking, growth and financial inclusion banking, treasury and financial market operations, and so on.

This guide aims to provide readers with information on RBL Bank, including RBL Bank's full form, RBL Bank history, products, services, and much more.

What is the Full Form of RBL?

The full form of RBL is Ratnakar Bank Limited. The bank was formerly called Ratnakar Bank, which was changed to Ratnakar Bank Limited. For convenience, the bank is commonly addressed as RBL Bank.

History of RBL Bank

RBL Bank, or Ratnakar Bank Limited, was incorporated in the year 1943 in the state of Maharashtra, India. The bank is a private-sector bank founded by Babgonda Bhujgonda Patil from Sangli and Gangappa Siddappa Chougule from Kolhapur. The earliest branches were located in the regions of Kolhapur and Sangli. This regional bank was initially launched mainly for small and medium enterprises. It was only in 1959 that the bank was given the title of a scheduled commercial bank. Later in 2010, the bank underwent a transformation in which the CEO and the managing director changed to Vishwavir Ahuja. Lastly, in 2014, the bank became Ratnakar Bank Limited from Ratnakar Bank. 

Service and Products of RBL Bank

RBL Bank has a wide range of products to cater to the needs of its customer base. Moreover, to improve the user experience, RBL Bank has spread its services to six vertices of banking. These are as follows. 

• Corporate and institutional banking
• Commercial banking
• Branch and business banking
• Retail investments
• Growth and financial inclusion banking
• Treasury and financial market operations 

The products and services offered by RBL Bank are as follows. 

• Accounts 
• Fixed Deposits
• Credit Cards 
• Debit Cards 
• Loans 
• Insurance 
• Investments Demat
• Convenience Banking
• Forex Services.

RBL Bank’s Subsidiaries

RBL Bank has a couple of subsidiaries. They are as follows. 

1. RBL FinServe Limited - This subsidiary was founded in 2005 and was formerly known as Swadhaar FinServe Financial Private Limited. RBL FinServe Limited was incorporated to provide comprehensive banking facilities to people with lower household incomes. 
2. RBL Bank Limited Asset Management Arm - The asset management firm of RBL Bank, which facilitates investments. 

RBL Bank’s Financial Overview

RBL is listed on National Stock Exchange and the Bombay Stock Exchange. With over 11 million customers, RBL Bank provides top-notch banking services with its 507 branches across 28 Indian states and union territories. Moreover, the bank is currently on an upward curve in terms of stock pricing. As of January 2, 2023, RBL Bank's stocks are priced at INR 181.40, a 1.11% increase. 

RBL Bank’s Balance Sheet

RBL Bank’s balance sheet from March 2021 to March 2022 is as provided below. 

BALANCE SHEET OF RBL BANK (in Rs. Cr.)	March 22
	12 months
EQUITIES AND LIABILITIES
SHAREHOLDER'S FUNDS
Equity Share Capital	599.51
TOTAL SHARE CAPITAL	599.51
Revaluation Reserve	0.52
Reserves and Surplus	12,018.21
Total Reserves and Surplus	12,018.73
TOTAL SHAREHOLDERS FUNDS	12,618.25
Deposits	79,006.53
Borrowings	11,093.04
Other Liabilities and Provisions	3,490.76
TOTAL CAPITAL AND LIABILITIES	106,208.58
ASSETS
Cash and Balances with Reserve Bank of India	13,111.08
Balances with Banks Money at Call and Short Notice	4,436.62
Investments	22,274.35
Advances	60,021.81
Fixed Assets	548.1
Other Assets	5,816.62
TOTAL ASSETS	106,208.58
OTHER ADDITIONAL INFORMATION
Number of Branches	502
Number of Employees	9,005.00
Capital Adequacy Ratios (%)	16.82
KEY PERFORMANCE INDICATORS
Tier 1 (%)	16.21
Tier 2 (%)	0.62
ASSETS QUALITY
Gross NPA	2,728.39
Gross NPA (%)	4
Net NPA	806.56
Net NPA (%)	1.34
Net NPA To Advances (%)	1
CONTINGENT LIABILITIES, COMMITMENTS
Bills for Collection	3,224.45
Contingent Liabilities	65,299.31

RBL Bank’s Annual Profit & Loss

RBL Bank’s Annual Profit and Loss Account from March 2021 to March 2022 is as provided below.

PROFIT & LOSS ACCOUNT OF RBL BANK (in Rs. Cr.)	March 22
	12 months
INCOME
Interest / Discount on Advances / Bills	6,316.88
Income from Investments	1,347.56
Interest on Balance with RBI and Other Inter-Bank funds	362.11
Others	149.24
TOTAL INTEREST EARNED	8,175.79
Other Income	2,340.53
TOTAL INCOME	10,516.32
EXPENDITURE
Interest Expended	4,149.05
Payments to and Provisions for Employees	1,001.54
Depreciation	163.99
Operating Expenses (excludes Employee Cost & Depreciation)	2,456.43
TOTAL OPERATING EXPENSES	3,621.96
Provision Towards Income Tax	151.31
Provision Towards Deferred Tax	-191.66
Other Provisions and Contingencies	2,860.40
TOTAL PROVISIONS AND CONTINGENCIES	2,820.05
TOTAL EXPENDITURE	10,591.05
NET PROFIT / LOSS FOR THE YEAR	-74.74
NET PROFIT / LOSS AFTER EI & PRIOR YEAR ITEMS	-74.74
Profit / Loss Brought Forward	46.32
TOTAL PROFIT / LOSS AVAILABLE FOR APPROPRIATIONS	-28.42
APPROPRIATIONS
Transfer To / From Statutory Reserve	0
Transfer To / From Capital Reserve	43
Transfer To / From Revenue And Other Reserves	0
Dividend and Dividend Tax for The Previous Year	0
Equity Share Dividend	0.00
Tax On Dividend	0
Balance Carried Over To Balance Sheet	-35.42
TOTAL APPROPRIATIONS	-28.42
OTHER INFORMATION
EARNINGS PER SHARE
Basic EPS (Rs.)	-1.25
Diluted EPS (Rs.)	-1.25
DIVIDEND PERCENTAGE
Equity Dividend Rate (%)	0

Samco’s Ratings for RBL Bank 

As per Samco’s ratings, RBL Bank shares are not an ideal option for investors. Two significant points highlight this. Firstly, the company’s returns on equity have been noted to provide a lower rate of return than the cost of capital. This means that, in the long term, the value of an investment will depreciate. Secondly, the stocks are assessed to be highly volatile, and the risk factor is high.